Capabilities - Fixed Income

Fixed income markets are increasingly dynamic and complex and create a wealth of opportunities for investors. Our sole objective is to provide favorable investment results for our clients in any market or in any channel. We are a pure play, fixed income platform that is not conflicted by the management of proprietary capital.

We offer our clients a value proposition anchored in the selectivity of investment decisions.

As of June 30, 2017, Invesco manages over US$208.9 billion of fixed income assets globally, the styles of which include but are not limited to fundamental and quantitative; global and regional; single and multi-sector, across different credit ratings. We have a comprehensive suite of fixed income strategies, including but not limited to Unconstrained Bond, Bank Loan, Investment Grade Credit, Mortgage-Backed Securities, High Yield, Corporate Bond and Emerging Market Bond strategies.

Expertise

Seasoned teams of decision makers.

Top-down and bottom-up fundamental relative research framework that uncovers value across macro, sector and security selection.

Perspective

Requisite size and scale across all fixed-income sectors to generate informed views.

Dynamic

Able to combine perspective and research skill into thoughtful investment solutions.

Able to remain selective in our investment criteria to increase potential to deliver alpha to each and every client.

Global Fixed Income

The active and diverse strategy seeks to perform through the entire economic cycle. Using a multi-sector and multi-currency approach, it leverages Invesco Fixed Income’s (IFI) global platform with the aim of generating total returns across a broad range of fixed income investments in order to achieve its objective of long-term capital growth, together with income. The strategy has the flexibility to invest globally across amongst others both government and corporate bonds, amongst others. Included in the list of eligible investments are Mortgage Backed Securities and Asset Backed Securities. Derivatives are used for risk mitigation (duration, currency & credit) and investment purposes. The structured and disciplined, yet flexible investment process is designed to leverage information and experience across IFI global team whilst fully integrating top-down and bottom-up decision making.

The Invesco edge:

Highly experienced Portfolio Management team leverage the full breadth of the top-down and bottom-up IFI platform of over 160 fixed income professionals in 11 locations worldwide in order to uncover relative value opportunities

With a rigorous focus on active risk management, IFI place great emphasis on internal processes and controls. IFI’s well-defined multi-layered process is completely transparent, permeating through every level of the investment process, promoting a culture of high standards and integrity

A broad investment universe allows freedom to invest in government and corporate bonds globally, including high yield, emerging markets and securitized to seek out the most attractive value opportunities amongst others.

Investment Grade Bond

Over the medium to long term, the Invesco Investment Grade Bond strategy aims to achieve a competitive overall investment return with relative security of capital in comparison to equities. The strategy primarily invests in investment grade corporate bonds. Invesco offers US investment grade credit, global investment grade credit, US high quality core and US core plus strategies to clients with different investment objectives.

The Invesco edge:

A highly experienced management team with an average of 13 years’ experience.

Access to global resources of a broader team of over 160 fixed income professionals in 11 locations to uncover value and opportunities.

A thematic approach to portfolio management that modulates risk through market cycles.

High Yield Bond

Invesco High Yield generates returns by actively managing a diverse portfolio of high yield securities in multiple sectors and industries. This strategy exploits the entire high yield quality spectrum and combines a top-down industry and sector allocation with rigorous bottom-up credit analysis and valuation of individual issuers. The strategy employs disciplined portfolio construction that places a strong emphasis on risk management: We seek to outperform relative to our benchmark, with below market risk. While duration is not a key component of effective management in the portfolio, we have generally maintained a duration range of +/- 20% of the index.

Multi-Sector Credit

The Invesco Multi-Sector Credit (MSC) strategy blends into a single portfolio four credit-oriented, fixed income asset classes: investment grade credit, high yield bonds, emerging market bonds and senior secured loans. It is a one-stop-shop for fixed income investors seeking broad credit exposure.

Dedicated MSC portfolio managers apply tactical asset allocation to these four asset classes in order to capture targeted beta and relative value opportunities in the market. These MSC managers have full discretion to determine the tactical allocation to the individual credit sectors within predetermined bands using input from resources across the Invesco Fixed Income platform.

Active modulation of risk between four asset sectors and the opportunistic bucket.

Real time risk management for efficient tactical allocations with an eye toward liquidity.

Long tenured and high performing teams supporting the four asset sleeves and opportunistic bucket.

Dedicated senior portfolio management team to seek excess returns between asset classes within a risk framework.

Tactical asset allocation that provides the flexibility to maximize returns through credit cycles.

An experienced investment team to take responsibility for active tactical allocation while specialist sector teams with established track records undertake security selection within each of the asset classes used.

Access to global resources of a broader team of over 160 fixed income professionals in 11 locations to uncover value and opportunities.

Senior Secured Loans

Invesco is one of the largest and longest-tenured institutional bank loan platforms in the world, managing portfolios totaling over US$30 billion globally. Invesco’s “full cycle” approach to managing senior loan credit risk is grounded in active, bottom-up research and has enabled our strategies to add value over the long-term. The Senior Secured Bank Loans team has 39 members, including 35 investment professionals.

The Invesco edge:

One of the largest institutional bank loan platforms.

Strong relationships and scale to achieve greater market access.

Experienced, stable and deep bank loan team.

Boutique culture backed by the resources of a large global investment management organization.

Unconstrained Bond

Investing with a flexible allocation to fixed interest securities and cash, the Invesco Unconstrained Bond strategy is actively managed with a strong emphasis on fundamental analysis and valuation and is not constrained by any benchmark. It can potentially be fully invested in cash and near cash instruments, depending on market conditions, with a view to achieving a high level of overall return, with relative security of capital.

The Invesco edge:

An unconstrained approach allowing portfolio managers to pursue tactical opportunities across the entire spectrum of fixed income securities, enabling them to change the portfolio completely as market conditions evolve.

The ability to increase risk to take advantage of depressed values or to adopt cash or near-cash positions with the aim of preserving capital in less promising market conditions.

Corporate Bond

The Invesco Corporate Bond strategy primarily invests in investment grade corporate fixed interest securities. The strategy is actively managed with a strong emphasis on fundamental analysis and valuation, and is not constrained by any benchmark. It aims to achieve a high level of overall return with relative security of capital.

The Invesco edge:

A highly experienced investment team with an average of 15 years’ industry experience and 9 years’ firm experience with an established track record.

The scope to invest in bonds with various levels of risk, including high yield corporate bonds, which allows managers to vary risk and market exposure in order to seek competitive overall returns.

An active risk management approach in which the managers are prepared to actively manage duration to help mitigate the risk of changes in interest rates where conviction is high.

Emerging Market Bond

Invesco Emerging Market Bond is a total return strategy that generates returns by actively managing a diverse portfolio of emerging market bond securities in multiple countries. The strategy takes advantage of both external and local currency debt and, to a limited degree, emerging market corporates from diverse sectors and industries.

Structured Securities

The structured product capabilities offered by Invesco are managed by a selected group of managers who provide clients with extensive, in-house structured securities expertise and efficiencies of scale. Invesco manages nearly US$35 billion of residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) across our global investment platform and has been involved in the RMBS and CMBS markets since their inceptions.

The listed investment capabilities and vehicles are not available in all jurisdictions in Asia Pacific. Additionally, not all investors are eligible in each investment vehicle. For more information, please contact our local Invesco office.

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